Best Life Insurance Companies in McKinney

FAQs

• Can you change beneficiaries on your life insurance policy in McKinney?

  Yes. In McKinney, you can change the beneficiaries on your life insurance policy while the policy is in effect, but these designations become fixed after your passing. However, there are exceptions to this rule, such as if you live in a community property state like Texas or have named someone as an irrevocable beneficiary, which would require obtaining consent from another individual to modify the beneficiaries.

• Does a divorce affect life insurance beneficiary designations in McKinney?

  A divorce can have implications for life insurance beneficiary designations in McKinney. Fortunately, most life insurance policies are considered revocable, allowing the policyholder to modify the beneficiary designation at their discretion. However, there are exceptions, such as policies with irrevocable beneficiaries, where the designated beneficiary cannot be modified once established. To adjust your beneficiary following a divorce, connect with your life insurance agent to verify whether the policy is revocable.

• Can your life insurance claim be denied due to the cause of death in McKinney?

  Yes, the cause of death can potentially impact the approval of a life insurance claim in McKinney. If your demise is linked to engaging in a high-risk hobby or occupation, your insurance provider may deny the claim, depending on the specific terms outlined in your policy. Additionally, "Slayer rules" dictate that the death benefit will not be disbursed to your beneficiary if they are found to be responsible for your murder or closely associated with it.

• Does life insurance go through probate in McKinney?

  Life insurance payouts bypass the probate process in McKinney. Thus, the proceeds from a life insurance policy are not subject to the probate court's procedures if there are named beneficiaries who are eligible to receive the payout. Therefore, as long as your policy has designated beneficiaries, the funds are paid directly to them outside the probate system.

• Are life insurance benefits protected from creditors in McKinney?

  Life insurance benefits in McKinney are shielded from creditors, meaning no one or any organization can use them to settle a policyholder's debts. This protection applies to both the cash value and the death benefit of a life insurance policy. Although life insurance benefits are shielded from creditors, unique situations may affect this protection. Consulting a legal professional is advisable to understand how these laws apply to your situation.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.

• How does life insurance work?

  The details of how life insurance works depend on your individual plan, but the basics are as follows: 

  • You pay a premium to purchase the insurance. Typically the premium is paid monthly, but it could be rolled into quarterly, bi-annual, or annual payments. 
  • As long as you are meeting or have met premium obligations, if you pass away, the insurance company makes the agreed-upon payment to the beneficiaries you designated. 
  • Beneficiaries usually have to provide the insurance company with a death certificate to receive their payments.

• How much is life insurance?

  The cost of life insurance ranges widely. Term life insurance can cost as little as a few dollars a day, and whole life insurance can cost thousands per month on the high end. Factors that impact the cost of your life insurance include whether you're choosing term life insurance or whole life insurance, your age, how much coverage you want, your overall health, and your gender.

• Is life insurance taxable?

  Life insurance proceeds are the funds paid via your plan to your beneficiaries if you pass away. These are also called death benefits. Typically, these are not considered income for taxes. If you take out cash value from a whole life insurance investment and the amount exceeds how much you paid in premiums, the difference may be considered taxable income.

  
  

• Can I buy health insurance that is not Obamacare?

  When people say "Obamacare insurance," they typically mean insurance within the health insurance marketplace. You can get health insurance outside of the marketplace by going through your employer, choosing COBRA coverage if you leave your job, or buying a short-term health insurance policy through an insurance agent. ACA-compliant plans meet all the benefits and coverage requirements of the Affordable Care Act. But you may be able to find supplemental or short-term coverage that simply provides peace of mind for major medical expenses.

• Can I buy health insurance anytime?

  To buy health insurance in the marketplace, you must purchase it within open or special enrollment periods. But you can purchase short-term coverage to bridge the gap between now and the next open enrollment period. These plans are meant to be used for less than a year. You can purchase them online or via insurance agents, but they may not be ACA-compliant.

• Who should buy supplemental health insurance?

  Supplemental health insurance is a product that helps cover the cost of services that your primary health insurance policy doesn't. One popular option is secondary insurance that helps cover some of the costs associated with high deductibles. Medicare supplemental insurance is also popular. Medicare doesn't cover everything, and older adults on a limited income can face large prescription or medical bills after Medicare pays. Supplemental insurance helps reduce those patient costs.